No, quite the contrary! Quantitative systematic models still need to be designed, monitored and constantly improved.
And that’s what we are here for.
At FWU Invest we practise systematic investing. We invest using a repeatable, data-driven approach, which we apply across as many securities as possible. We use the power of machines to help us invest.
Our approach comes with several advantages:
1.
Most obviously, by being systematic we will tend to avoid the behavioural biases many investors can fall prey to, such as the unwillingness to let go of a losing stock, overconfidence or simply greed and fear.
2.
Furthermore, using a systematic approach comes with the inherent benefit of scalability.
Systematic approaches can be used across all markets around the globe. Using the stock market as an example, our approach can easily analyse and monitor thousands of stocks simultaneously from all corners of the world. For our investors, this means more opportunities and more potential for performance.
3.
Lastly, a central reason why we use a systematic approach is risk management. In our set-up, risk management is included from the ‘ground up’, meaning it is a central part of our strategies, as opposed to just an ‘add-on’ needed for regulatory purposes. Using a data-driven, model-based approach allows us to configure our portfolios with the control of risk firmly in mind.